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True North United Investments filed a lawsuit against Eric Shirmeyer, CEO of web3-based Play-2-Earn gaming platform Gala Games, alleging corporate mismanagement, improper use of funds and questionable business practices.
Gala Games play-to-earn gaming platform is facing a legal battle
Shirmeyer co-founded Gala Games with Wright Thurston, founder of True North United Investments, LLC.
This is not the first legal dispute between fellow entrepreneurs. Per a previous lawsuit, Shirmeyer alleged that Thurston stole $130 million worth of cryptocurrency. Thurston filed a lawsuit against Shirmeyer, alleging that he had violated his fiduciary duties and engaged in self-dealing.
Thurston also alleged that Shirmeyer borrowed millions of dollars from Gala Games for personal use, misappropriated $600 million in company assets, and engaged in activities such as seizing business opportunities by creating Gala Games-related entities in Switzerland and Dubai. Engaged in
In addition, the lawsuit argues that Shirmeyer prevented Thurston from participating in company decisions. Providing incomplete or incorrect financial information has led to allegations of poor financial management.
According to the lawsuit, these actions are believed to be causing present and potential future harm to Gala Games and its shareholders, including True North. In response, Tru North is seeking the removal of Schirmeier from his positions as director and chairman and remedies for alleged damages caused by his actions.
The US SEC also filed a lawsuit against Thurston in a separate fraud case related to green boxes – devices that claimed to mine energy-efficient cryptocurrency tokens.
For starters, Gala Games is a blockchain gaming platform that offers a range of Play-to-Earn (P2E) gaming titles, NFT marketplace, music and movie products.
This platform is built on Ethereum and Binance Smart Chain. It operates on a system of decentralized nodes owned by users that perform various tasks from hosting to voting on the future direction of game development.
Gala Games provides a unique ecosystem where players can enjoy playing games and generate income through various in-game activities, NFT ownership and active participation in the development and administration of the platform.
The Gaming Revolution of Play to Earn
The P2E gaming market is growing rapidly. NFT-driven P2E gaming is becoming an integral part of the Web3 metaverse.
In July 2021, Axie Infinity, a blockchain-based game where players collect, breed and fight fictional creatures called Axies, gained immense popularity. Players can earn native tokens, AXS, and the in-game currency, SLP, by participating in battles and other activities. The game’s success brought widespread attention to the play-to-earn model.
Many play-for-money games have emerged, offering different gameplay experiences and earning opportunities. Titles such as “Splinterlands,” “Lost Relics,” and “The Sandbox” have gained popularity, attracting players and investors alike.
Changes to Facebook’s meta platform and the recent acquisition of Activision Blizzard by Microsoft are expected to have a significant impact on the P2E gaming industry.
The play-to-earn model of business has been successful when used with blockchain gaming.
Gala Games’ native GALA token has lost 98% in value since its all-time high of over $0.82 in November 2021.
According to CoinGecko, at press time, the price of GALA is hovering around $0.01669572, representing a 9.4% drop over the past 24-hours. The market capitalization of GALA is $431,728,183.
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Source: crypto.news
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